project on icici pru

8/14/2019 project on icici pru

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HISTORY AND TIE UP

WITH

ICICI PRU


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ICICI is an Indian company and PRUDENTIAL is an England based

company.

PRUDENTIAL has 157 years experience and ICICI is working from

last 50 years in India.

In January 2000, when the IRDA act came in existence all the

insurance companies whether Private or Govt. companies came under

the Act.

With the passing of this act all the private companies enter in the

Indian Market because Indian market was vacant with insurance point

of view.

ICICI Group came in the market with the collaboration of

PRUDENTIALLIFE INSURANCE COMPANY.

In Insurance sector ICICI- PRUDENTIAL is No. 1 market player in

India. But when the act was not present then only one company has

hold in the market i.e. LIC (Life Insurance Company). Then LIC

captured all the 100% Market.


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In last 5 years , ICICI PRUDENTIAL has entered in the market and

the effect is that the share of the LIC has been reduced . It is from

100% to 74%.

ICICI PRUDENTIAL has very large group of employees. They are

running their business through Advisors, Corporate agents and D.M.

etc.

In year (2004-2005), ICICI PRUDENTIAL has collected 2400 Crores

premium in India.

The fund management of that premium amounted to 8800 Crores.

ICICI PRUDENTIAL have both plans i.e. ULIP market link and

endowment plans.

In insurance industry ICICI PRUDENTIAL is the first company who

launches the ULIP plans i.e. Unit Linked Insurance Product which is

totally linked with the Share Market or Debt Market or Call Money

Market etc.


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But now a days the ICICI PRUDENTIAL has developed

their relations with the Banks also as the competition in the market got

fire. So in Sept. 2004 , ICICI PRUDENTIAL shake hands with Capital

Local Area Bank Ltd. Which is also one from the No. 1 local Banks. This

collaboration is groomed in the presence of Mr. Sarbjit Singh Samra

(M.D.) and their C.S. (Mr. Dinesh Gupta and Mr. Gurpreet Chug). This

collaboration has to be done by the corporate agent named PIONEER

ASSURANCE PVT. LTD. This Corporate agency has adjoined both the

groups i.e. ICICI PRUDENTIAL and CAPITAL LOCAL AREA BANK

LTD. In last couple of quarters Capital Bank has Collected premiumfrom their customers amounted in crores.


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IRDA ACT


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The object of this Act, is to provide for the establishment of an Authority

to protect the interests of holders of insurance policies, to regulate , promote

and ensure orderly growth of the insurance industry. Under the Act , the

Insurance Regulatory and Development Authority has been established.

IRDA(INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY ACT, 1999)

Under this act an authority called IRDA has been set up.

This is a corporate body established for the purpose and objects as per out in

the explanation to the title.

The authority replaces controller under insurance act 1938.

The first schedule amends insurance act 1938.

It states that if Authority is super ceded by central government, the

controller of insurance may be appointed till. Such time as Authority is

reconstituted.


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SCOPE

To permit private companies to enter the insurance market ,

government has enacted insurance regulatory and development authority

Act, 1999.

The act was passed by the parliament in December 1999.

It received presidential approval in January 2000.

This act provides for the establishment of the authority.

To protect the interest of holders of insurance policies.

To regulate, promote and ensure orderly growth of insurance industry

for matters connected there with or incidental thereto.

This act also sought to amend the following acts:

The insurance Act, 1938.

The Life Insurance Corporation Act , 1956.

The General Insurance Business (Nationalization) Act 1972

(GIBNA712).


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This act applies to whole India including J& K State , which is effective

from 29th dec. 1999.

CONSTITUTION OF IRDA

The insurance regulatory and development authority consists of the

following members.

o Chairperson

o Not more than five whole time members.

o Not more than four part time members to be appointed by the

central government.

Members should be the person of

Ability

Standing

Integrity

They should have experience in the fields of

Life Insurance

General Insurance

Actuarial Science


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Finance

Economics

Law

Accountancy

Administration, or

Any other discipline , thought to be useful by the central government.

(Chairperson, Members, Officers and other Employees of authority

shall be public servants.)


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DUTIES, POWERS AND FUNCTIONS OF THE

AUTHORITY

The powers and functions of the authority include

registration of insurers intermediaries and agents, regulation of the terms

and conditions of the contracts of insurance, promoting and regulating

professional organizations connected with the insurance and re-insurance

business, monitoring investment of funds and solvency margins of insurance

companies.

The authority is to be advised by a Committee to

be known as the Insurance Advisory Committee, which shall consists of not

more than twenty-five members excluding ex-officio members, to represent

the interests of commerce, industry, transport, agriculture, consumer fore,

surveyors, agents, intermediaries, organizations engaged in safety and loss

prevention, research bodies and employees association in the insurance

sector. The insurance advisory committee is expected to advise theAuthority on matters relating to the making of the regulations.

The IRDA has , in exercise of its authority issued a

number of regulations, which have to be compiled with the insurers. Only


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Indian insurance companies will be given registration to transact insurance

business. An Indian Insurance Company has been defined as a company

incorporated under the Companies Act 1956 and, in the paid up capital of

which , the holding of a foreign company , directly or through its

subsidiaries and nominees, does not exceed 26%. The paid up capital of

companies wanting to transact life or general insurance business will have to

be not less than Rs. 100 Crores and in the case of companies wanting to

transact reinsurance business the paid up capital will have to be not less thanRs. 200 Crores. Every insurance company will have to maintain at all times,

assets which are not less than specified limits depending on the extent of the

liability under its business . It has also been notified that every insurance

company will have to appoint accuracy , to be approved by the IRDA . It

will be the duty of the actuary to ensure that

The assets are valued in the appropriate manner.

The liabilities are evaluated as required and

The prescribed margins for maintaining solvency are complies with.

The IRDA has also issued regulation with

regard to advertisements. These regulations are applicable to all

advertisements, whether issued by the insurance company or an insurance

intermediary, including an agent. The definition of advertisement has been

made very wide so as to include almost any public communication,

recommending or soliciting a sale of an insurance policy. It is obligatory


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that every advertisement should have full disclosures of the product

mentioned and of the advertiser, including license and registration numbers.

Advertisement to be issued by agents must be approved by the insurer in

writing , before issue.

HOW IT WORKS


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An intelligent investor always seek a flexible investment plan

to invest your savings. At the same time , he wishes to protect his family

from unforeseen circumstances. For him , an ideal plan would be one that is

flexible enough to meet his investment and protection needs.

How The Policy Works?

You need to choose the premium amount , term and sum assured for

which you wish to take the policy.

After deducting premium allocation charges , the balance amount is

invested in the investment fund(s) of your choice.

You can opt for add-on riders available under the policy.

On survival, the maturity benefit is paid to the policy holder . In the

unfortunate event of death , the nominee receives the higher of sum

Assured or the fund value.

Benefit In Detail

Choice of Investment Funds


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We offer you 4 investment funds. You have the option to choose how

you want your investment to grow , based on the objectives of each of the

funds.

Given following are the investment objective and asset allocation of each of

the funds :

Fund Name & its

Objective

Asset

Allocation

Min. Max. Potential Risk-

Reward

Maxi miser: Long

Term Capital

Appreciation

Equity and

Equity related

securities

Debt ,Money

Market & Cash

75%

0%

100%

25%

High

Balancer: Balance of

growth and steady

returns

Equity and

Equity related

securitiesDebt ,Money

Market & Cash

0%

60%

40%

100%

Moderate

Protector:

Accumulate steady

income at a lower

risk.

Debt

instruments,

Money Market

& Cash

100% 100% Low

Preserver: Protectionof capital through

very low risk

investments.

Investments up to

Debtinstruments,

Cash & Money

Market

0%

50%

50%

100%

Capital

Preservation


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20% can be allocated

to this fund

* You can invest in any one or a combination of the above mentioned

funds.

Switching Option

Under this option you can switch your investment between thefunds at any time (provided the policy is in force), depending on your

financial priorities and investment objective . In any policy year , 4

switches can be done free of charge. The minimum switch amount is

Rs. 2,000.

Additional Allocation Of Units

There will be additional allocation of units every 4th Year,

starting from the end of the 4th Year at the rate of 4% of annual premium

into your investment fund. Additional allocation of units will be made

only if the premiums have been paid regularly up to the date of

allocation.

Partial Withdrawal Benefit


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Partial withdrawals will be allowed after completion of 3 policy

years and on payment of full 3 years premium. The minimum partial

withdrawal amount is Rs. 2000.

Morality Benefit

On maturity of this policy , you will be entitled to receive the

Fund Value at the time of Maturity . Alternatively, you can opt for thesettlement options available.

Settlement Option

On maturity of the policy , you can choose to take the fund

value as a structured benefit. With this facility , you can opt to get

payment on a yearly , half yearly . quarterly or monthly (Through

ECS) basis, for a period of 1,2,3,4,or 5 years , post maturity (Settlement

period) . At any time during the settlement period , you have option to

withdraw the entire fund value. During the settlement period, the

investment risk in the investment portfolio is borne by the policy holder.

Death Benefit


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In the unfortunate event of death during the term of the policy ,

the nominee shall receive the higher of Sum Assured (net of permissible

partial withdrawal) and the Fund Value.

Cover Continuance Option

This option ensures that your life insurance cover continues in

case you are unable to pay premiums , any time after payment of first

three years premium. All applicable charges will be automatically

deducted from the units available in your fund. You need to opt for cover

continuance , if you wish to avail of this benefit.

Additional Protection with Riders

You can further customize your policy by adding riders, to

enjoy additional protection as given below:

Riders Benefit

Accident &

Disability Benefit

Riders(ADBR)

In the event of death or disability due to an accident ,

the rider benefit amount would be paid accordingly.

Critical Illness

Benefit Rider(CIBR)

In the event of the Life Assured being diagnosed for any

of the specified critical illness, the rider benefit amount

would be paid.

Waiver of Premium

Rider (WOPR)

In the event of total and permanent disability due to an

accident , all further premiums till maturity would be


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paid by the company.

Rider charges for opted riders will be recovered by cancellation

of units. For further details on the Rider benefit, exclusions andconditions, please always got from the brochure.


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CAN I SURRENDER MY POLICY

One of the main question which have utter importance that

whether one can surrender his policy or not. Because urgency can come at

any time in anyones life.

The answer to this question is yes, you can surrender your

policy. Surrender values are available to you after deducting surrender

charges and would depend on the number of completed policy years.

Following are the surrender values applicable after payment of full 3 years

premium.

No. of completed Years of the

policy

Surrender value as a % of the fund

value

3 Years 98%

4 Years 99%

5 Years and Above 100%


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IMPORTANT CLAUSE

NOMINATION


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HAVE YOU NOMITATED?

Nomination is a very important aspect of file insurance. To help

you understand the nomination process and it importance, we have devised a

guide that gives you a brief explanation of the process involved in

nomination.

Making a Nomination

The purpose of making nomination is to insure that your loved

ones are financially protected and have quick access of funds, should

something happen to you. Remember, if you dont make a nomination in

your insurance policy , your insurance company is not a position to release

the policy money until your loved ones obtain a probate or later of

Administrator, which may take years !

Note: Nomination is required for the payment of death benefit only and not

living benefit.

How does nomination work?


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You can nominate a person of your choice at the time of

applying for the life insurance policy of even after you have taken the

policy. A nomination enables the nominee the policy moneys from the

insurer, on behalf of legal heir(s) of the deceased. However, it advisable that

the nominee is a family member as the nominee has no pass on the death

benefit to the legal heirs as per the nomination section of insurance act.

You can nominate more than one person . However, in the event of

life assureds demise, should nominees should authorize one among

themselves to receive the policy moneys from the insurer.

How does one can make a nomination?

The process is simple :

a) Fill up the nomination from at any of our branches of download it

from our website www.Iciciprulife.com

b) Give complete details about the nominee (full name, address etc.)and critical details to establish the identity of a minor nominee (if

any). This helps to avoid any confusion in case there is a claimant

with a similar name staking a claim.

c) Ensure that the nomination form is signed by the witness who is

18years of age or above, of sound mind , and who is not your

nominee.

d) Submit the form at the nearest icici prudential Lic Ltd. branch

How do I change the nomination ?
http://www.iciciprulife.com/http://www.iciciprulife.com/


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You can make changes to a nomination by writing to us . The latest

nomination will supersede all previous nominations. A nomination will also

be considered revoked upon the demise of all nominees (if there is than one

nominee), during the lifetime of the policyholder.

What happens if a nomination is made the policy is assigned?

The nomination in such a case is cancelled automatically and the assignee is

entitled to receive the death benefit.

What happens when there is no nomination?

Where no nomination has been made, ICICI prudential shall pay the policy

money to the applicant who produces the probate or letters of administration

or any other legal evidence of title. Under the circumstances, the person

receiving the policy money is only receiving it as an executor and must

distribute it in accordance to the probated will of the deceased, or if there is

no will, according to the applicable laws of distribution.

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